OPKO Health to acquire Bio-Reference Labs in $1.47 billion deal

US diagnostics and drug maker OPKO Health (NYSE: OPK) has signed a definitive merger agreement to acquire Bio-Reference Laboratories (Nasdaq: BRLI), whose shares leapt 39.6% to $46.02 on the news, while OPKO dipped around 5% in pre-market trading.

Bio-Reference Laboratories is the third largest full service clinical laboratory in the USA and is known for its innovative technological solutions and pioneering leadership in the areas of genomics and genetic sequencing.

Under the terms of the accord, which has been approved by the boards of directors of both companies, holders of BRLI common stock will receive 2.75 shares of OPKO common stock for each share of BRLI common stock. Based on a closing price of $19.12 per share of OPKO common stock on June 3, 2015, the transaction is valued at around $1.47 billion, or $52.58 per share of BRLI common stock. The companies expect the transaction to be completed during the second half of 2015. Closing of the transaction is subject to approval of Bio-Reference Laboratories’ shareholders and other customary conditions.